This Week in “ESG During Coronavirus” – April 24, 2020

Blog April 24, 2020

Truvalue Labs' Coronavirus ESG Monitor

Truvalue Labs’ Coronavirus ESG Monitor is an interactive dashboard that highlights key trends and insights on ESG implications of the pandemic.  The monitor includes COVID-19 signals, focusing on five key areas: social impact, response, labor, supply chain, and economy and a broader COVID-19 Signal we’ve created that integrates the 26 ESG topics as defined by the Sustainable Accounting Standards Board (SASB)

Zooming in on companies stepping up operational responses

Outside of the healthcare space, various industries have stepped up operational response efforts to address new issues and supply constraints caused by the pandemic. For investors, companies that lead the charge may possess under-appreciated intangible value (quality of management team, human capital, technological competency, etc.). 

Truvalue Labs’ Response Signal can help to identify new investment opportunities. For example, in the chart below, we use the Response Signal to surface the top 10 companies (outside of the healthcare space) that have received both the most attention with positive sentiment.

Top Companies outside the Healthcare Sector by Truvalue Labs' COVID-19 Response Signal

Looking at Top-Performing Industries by Truvalue Labs’ COVID-19 Response Signal

On an industry basis, it’s interesting to see what areas of the economy have been able to respond, and in some cases, in unexpected ways, including:

  • Apparel companies such as HanesBrands have been producing face masks.   The nylon industry has previously stepped up to serve the country’s wartime needs before, so there is precedent for this action.  
  • Certain utility companies have announced residential electric bill rate decreases and suspended late payment fees and the practice of turning off electricity for nonpayment  to alleviate temporary financial strains.
  • Airlines are working to determine how to safely start flying again.  One airline, Dubai-based Emirates, is the first airline to test passengers for COVID-19 at the airport before their flights.   

In the chart below, you can also see which industries have been leaders in their overall response to the coronavirus pandemic  in the last week based on Response Signal volume.

Top Industries by Truvalue Labs' COVID-19 Response Signal

Understanding the Data and the ESG Implications of the COVID-19 pandemic 

For an explanation of the monitor and charts, watch an on-demand webinar that walks through the high level findings and analysis to give you ideas on how to make sense of the data and potentially combine it with your own analysis.  

We’re offering a number of ways for you to stay informed on an ongoing basis.  Each week, we provide an overview of the key trends and patterns from our Coronavirus ESG Monitor and dataset in our blog (see last week’s blog) and via a weekly email (subscribe here).  

You can also stay on top of the ESG implications of the coronavirus, by visiting our ESG Implications of Coronavirus page, where we bring together industry and academic research, media coverage and other key information in one single place.